“Amazon Tax” Passes State Committee

Bill forces online-only retailers to charge state sales tax


One benefit of shopping online could be going away in Connecticut.

A committee in the state legislature has appoved a so-called "Amazon tax," which would tax online sales for the first time in the state, reports the Hartford Courant.

"I think the Amazon tax is an important stake in the ground," Gov. Dannel Malloy said Monday, according to the paper. "We have given a definitive advantage to certain types of retailers and that is adversely impacting employment in a place like the state of Connecticut. I'm for leveling that playing field."

Amazon, the popular online retailer, is currently suing the state of New York for a similar tax.

Not all online retailers avoid charging a state sales tax. If a company has a physical store in the state, it will often collect the tax.

The state's tax commissioners tells The Courant he doesn't understand why Amazon and other online-only retailers are fighting so hard against the tax proposal.

"What's the big whoop here, Amazon? Do you really think you're going to lose business here?" Sullivan asked.

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